This mandate attempted to ensure a higher standard of security controls surrounding the processes and procedures for protecting controlled unclassified information (CUI). As defined by the National Archives, CUI is “information that requires safeguarding or dissemination controls pursuant to and consistent with applicable law, regulations, and government-wide policies but is not classified under Executive Order 13526 or the Atomic Energy Act, as amended.”

Confused? You’re not alone! Assessing what is and what isn’t CUI, as well as navigating the complex and potentially costly road to compliance, has left many contractors struggling to stay on schedule. Although the deadline has passed, a large number of companies are still standing around scratching their heads, wondering how to proceed.

Consequences of non-compliance

Non-compliance is not going to be acceptable for much longer. Clause 3.12.4 of NIST 800-171 allows for the submission of a Security System Plan (SSP) and a Plan of Actions and Milestones (POA&M) to help companies define how they will bridge the gap, but it is also reasonable to expect that the U.S. Government will soon begin to terminate contracts that fail to meet the accepted requirements. Defense prime contractors will also begin to terminate non-compliant subcontractors and suppliers to avoid having to report themselves as non-compliant.

Because so many companies have fallen behind, those that have achieved this rare milestone will have positioned themselves to receive the lion’s share of future defense contracts. Simply put, if companies want to remain competitive, they must move as quickly as they can to get on track or risk falling behind their competition.

Becoming compliant

If your company has fallen behind, don’t get discouraged. The path to compliance is a confusing one, but it’s possible to find your way. Start by taking the following steps…

1. Define CUI

CUI is situation-specific and can be tricky to assess. In some cases, the information that needs to be protected are specified in the awarded contract. However, most of the time the definition is unclear.

In their own definition, DFARS has included CUI that is “collected, developed, received, transmitted, used, or stored by or on behalf of the contractor in support of the performance of the contract.” Information that has been created or received by contractors, but not marked, may also need to be appropriately safeguarded. Identifying what needs to be protected is the first step.

2. Identify where it lives

The next step is to figure out exactly where the CUI is being stored, processed, or transmitted from so that you know which systems need to be secured.

Creating a Data Flow Diagram (DFD) is a helpful way to begin figuring out how CUI is traveling through your network. It could also be useful to create a network diagram to identify what controls you already have in place that are effectively safeguarding your CUI. Together, these tools can help you identify the weak points you’ll need to address to close the gaps in your systems.

3. Document your progress

Having identified CUI and where it lives, you should now begin the process of referring back to NIST 800-171 to figure out the controls you will need to put into place.

As you forge ahead in making these updates, it’s critical to document what you’ve changed, how it will improve security, what controls are not applicable to your current situation, and why they won’t be needed.

This process will create a record demonstrating your ability to assess and safeguard sensitive information, moving you closer to your ultimate goal of declaring full compliance with the DFARS/NIST 800-171 mandate.

Your competitors are working on compliance — are you?

If you’re not currently working towards meeting the DFARS/NIST requirements, rest assured your competitors are! The window for implementing this essential security update is closing rapidly, so don’t lose your competitive edge — contact us now for a free consultation on achieving your compliance goals.